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EUR/JPY 1 Hour Forex Chart
EUR/JPY 1 Hour Forex Chart

The top WATR levels held like a champ last week, giving trend traders another opportunity to play the strong move lower.  After the big bounce from just above the 134.00 handle, the picture just became a little bit cloudier as to whether or not we’ll continue to see a trending market this week.  A retest of potential resistance between 137.50 – 138.00 will be the next area to watch and see if the trend lower is still intact.  If it doesn’t hold, we could well be back on our way to retest highs around 141.00.

  • WO: 136.64
  • Top WATR: 137.57
  • Bottom WATR: 135.72
  • PWH: 136.72
  • PWL: 134.16


GBP/JPY 1 Hour Forex Chart
GBP/JPY 1 Hour Forex Chart

The forex chart on Guppy is much the same as EUR/JPY with risk sentiment being the main driver and the Japanese yen as the vehicle being driven. Despite the big bounce off of 168.00, the downtrend starting in mid-September is still intact with 174.00 – 175.00 the area to watch for sellers to potentially jump back in.  A break of that area could draw in the buyers to push and retest the previous swing higher around 180.00.  Either way the market goes, the risk-to-reward is very attractive.

  • WO: 172.59
  • Top WATR: 174.05
  • Bottom WATR: 171.13
  • PWH: 173.02
  • PWL: 168.02


EUR/GBP 1 Hour Forex Chart
EUR/GBP 1 Hour Forex Chart

It looks like the downtrend in EUR/GBP may be done for now, and for those who are bullish on the pair, the retest of the moving averages (and oversold conditions on stochastic) may be a good enough argument for a short-term long position.  For those who are bullish and conservative, a pullback to the bottom WATR and PWL area could draw in a strong buying support if the recent shift in market drivers continue to hold.

  • WO: .7915
  • Top WATR: .7965
  • Bottom WATR: .7866
  • PWH: .8047
  • PWL: .7853

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.